9 Things You’ll Have To Do In A Chapter 13 Bankruptcy

Are you drowning in debt and would like to know how to file for a Chapter 13 bankruptcy? Make sure you understand the nine things listed below so you know what it takes to file for and complete a Chapter 13 bankruptcy successfully.

1 – Be Sure The Chapter 13 Bankruptcy Is Right For You

You should always learn about the other options, such as the Chapter 7 bankruptcy, before you go ahead and do a Chapter 13 bankruptcy.

2 – Look At Your Debt

If you notice your debts are out of control, you may not qualify or get a feasible plan.

3 – Do You Have Sufficient Income

Are you able to make the payments with a Chapter 13 plan with the household income? If not, the court won’t allow you to continue.

4 – What’s The Value Of Your Property

Before you even file for the Chapter 13 bankruptcy protection, you should know the amount of the property you possess, its worth and the amount of the property is immune. This will certainly come into play when figuring up the amount of money you’ll pay under the Chapter 13 bankruptcy plan.

5 – Complete The Forms

Once you’ve figured out whether or not you’re qualified to file for Chapter 13, you need to input all your financial information on the forms and come up with a repayment plan.

6 – File The Forms

Once you’ve checked over the forms, it’s time to file them and, in conjunction with the bankruptcy court, plan to get the process started.

7 – Show Up For Two Hearings

Several weeks after you have filed, you’ll go to the courthouse to meet with a trustee to look over the forms and your proposed plan. Creditors can also go to this meeting and may ask questions or negotiate with you about the terms of your plan.  Once this meeting is over, either the same day or another day entirely, you’ll have a confirmation hearing where the bankruptcy judge will decide to give your plan the green light. Creditors are allowed to voice their objections, which the judge can rule on.

8 – Begin Making Payments

You’ll need to start making payments within 30 days…according to the terms you have set forth.  If any issues crop up during the case, you’ll need to go back to court. Miss any payments and your case can be dismissed.

9 – Have Your Bankruptcy Discharged

Once you’ve made all your payments, the bankruptcy will be discharged. This discharge will relieve you of any other legal requirement for the unpaid balance on listed unsecured debts in the plan. Once the total payment vowed in the bankruptcy plan has been paid, that’s it!